Pakistan’s domestic cement demand falls 3.05% in FY25, exports rise by 29.46%

Local cement sales declined to 37.017 million tonnes, while exports reached 9.204 million tonnes; APCMA urges govt to reduce duties on cement to push domestic demand

Pakistan’s domestic cement demand declined during fiscal year 2024-25, with local sales falling by 3.05% to 37.017 million tonnes compared to 38.181 million tonnes in FY24.

The decline in local demand was partly offset by a notable increase in exports, which grew by 29.46% to 9.204 million tonnes in FY25, up from 7.11 million tonnes in the previous year.

According to data from the All Pakistan Cement Manufacturers Association (APCMA), the cement industry experienced a marginal growth of 2.05% in total despatches, reaching 46.221 million tonnes compared to 45.291 million tonnes in FY24.

In June 2025, local despatches saw a sharp decline of 15.65%, dropping to 2.597 million tonnes from 3.079 million tonnes in June 2024. However, exports surged by 81.7%, rising from 472,865 tonnes in June 2024 to 859,204 tonnes in June 2025. 

Total cement despatches in June 2025 stood at 3.457 million tonnes, showing a 2.69% drop compared to the same month last year.

Regional breakdown shows North-based cement mills despatched 2.445 million tonnes in June 2025, a decrease of 10.21% from the previous year’s 2.723 million tonnes. 

In contrast, South-based mills recorded a 21.99% increase in despatches, reaching 1.01 million tonnes compared to 0.83 million tonnes in June 2024.

For domestic markets, North-based mills saw a 14.43% decline in June 2025, with 2.237 million tonnes despatched, while South-based mills recorded a 22.5% drop to 360,814 tonnes.

Exports from North-based mills rose sharply by 91.05% to 207,975 tonnes, while South-based mills also saw a significant increase of 78.91%, reaching 651,229 tonnes.

For FY25, North-based mills recorded a 2.60% decline in domestic despatches, reaching 30.726 million tonnes compared to 31.545 million tonnes in FY24. Exports from North-based mills grew by 15.56% to 1.684 million tonnes. On the other hand, South-based mills experienced a 5.21% decrease in domestic despatches, amounting to 6.291 million tonnes. However, exports from South-based mills grew by 33.04%, reaching 7.519 million tonnes.

APCMA officials highlighted the stagnant domestic demand as a major hurdle to growth in the cement sector. They urged the government to reduce duties and taxes on cement, describing it as a basic necessity rather than a luxury. 

The association emphasized that increasing domestic consumption is essential for utilizing idle capacity, boosting economic growth, and creating employment opportunities.

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